Remain invested in Nifty with a stop loss below 10,800: Indiabulls Ventures

We recommend traders to buy at current levels as there are strong support clusters at 10,800-10,700 on the downside, which are likely to act as a cushion on the lower side, Manav Chopra, CMT, Head Research - Equity, Indiabulls Ventures Ltd, said in an interview with Moneycontrol’s Kshitij Anand.

Edited excerpt:

Q: Nifty witnessed a strong rally at the beginning of the week. Do you see some resistance near 11,100-11,200?

A: Nifty has bounced from the key support levels and has formed a bullish piercing candlestick pattern last week on Friday which signals a short-term bottom in place.

The prices after a 5-Wave decline and positive divergence on the RSI indicator indicates a retracement rally towards the 11,150-11,250.

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Manav Chopra

Head of Research|Indiabulls Ventures

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We recommend traders to buy at current levels as there are strong support clusters at 10,800-10,700 on the downside, which are likely to act as a cushion on the lower side.

Q: Many stocks from the broader market hit a fresh 52-week low on the BSE last week. What should investors do if they hold any of them in their portfolio?

A: One needs to review one's portfolio every quarter and ensure adequate risk management at every level. Markets are very dynamic and sensitive to multiple news and events which can cause a sudden plunge.

Investors should ensure that they are invested in quality stocks that are in primary uptrend cycle or bullish structures. And, one must try and exit stock having issues of corporate governance or a high leveraged.

Q: What is your call on the rupee which has already hit 8-month low?
A: The FII continue their selling spree resulting in dollar outflows. We expect USDINR to trade with a bullish bias within a range of Rs71.4-72.1 per US Dollar. We might witness some profit-taking at higher levels.

Disclaimer: The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.